nvq
Table of Contents

 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number: 811-21269
Wells Fargo Advantage Income Opportunities Fund
(Exact name of registrant as specified in charter)
525 Market Street, 12th Floor, San Francisco, CA 94105
(Address of principal executive offices) (Zip code)
C. David Messman
Wells Fargo Funds Management, LLC
525 Market Street, 12th Floor, San Francisco, CA 94105
(Name and address of agent for service)
Registrant’s telephone number, including area code: 800-643-9691
Date of fiscal year end: April 30, 2010
Date of reporting period: January 31, 2011
 
 

 

TABLE OF CONTENTS

ITEM 1. SCHEDULE OF INVESTMENTS
ITEM 2. CONTROLS AND PROCEDURES
SIGNATURES
Certifications

Table of Contents

ITEM 1.   SCHEDULE OF INVESTMENTS

 

Table of Contents

PORTFOLIO OF INVESTMENTS — January 31, 2011 (UNAUDITED)
INCOME OPPORTUNITIES FUND
                                 
Principal     Security Name   Interest Rate     Maturity Date     Value  
Corporate Bonds and Notes: 111.95%                        
Consumer Discretionary: 17.56%                        
Auto Components: 1.72%                        
$ 4,455,000    
Cooper Tire & Rubber Company
     7.63 %     03/15/2027     $ 4,265,663  
  6,830,000    
Goodyear Tire & Rubber Company
     10.50       05/15/2016       7,752,050  
       
 
                        
       
 
                     12,017,713  
       
 
                      
Diversified Consumer Services: 3.55%                        
  4,055,000    
Carriage Services Incorporated
     7.88       01/15/2015       4,065,138  
  950,000    
Service Corporation International
     6.75       04/01/2016       1,002,250  
  1,125,000    
Service Corporation International
     7.00       05/15/2019       1,155,938  
  9,376,000    
Service Corporation International
     7.50       04/01/2027       9,141,600  
  880,000    
Service Corporation International
     8.00       11/15/2021       961,400  
  1,600,000    
Service Corporation International Series WI
     7.00       06/15/2017       1,686,000  
  6,550,000    
StoneMor Operating LLC
     10.25       12/01/2017       6,828,375  
       
 
                        
       
 
                     24,840,701  
       
 
                      
Hotels, Restaurants & Leisure: 3.78%                        
  2,875,000    
Ameristar Casinos Incorporated
     9.25       06/01/2014       3,083,438  
  2,525,000    
Chukchansi Economic Development Authority††±
     3.94       11/15/2012       1,644,406  
  350,000    
Citycenter Holdings LLC††
     7.63       01/15/2016       357,875  
  750,000    
Citycenter Holdings LLC@††
     10.75       01/15/2017       781,875  
  1,025,000    
Dineequity Incorporated††
     9.50       10/30/2018       1,103,156  
  6,262,000    
Greektown Superholdings Incorporated††
     13.00       07/01/2015       7,091,715  
  1,775,000    
NAI Entertainment Holdings LLC††
     8.25       12/15/2017       1,890,375  
  2,880,000    
Pinnacle Entertainment Incorporated
     7.50       06/15/2015       2,980,800  
  1,130,000    
Scientific Games Corporation
     9.25       06/15/2019       1,211,925  
  665,000    
Shingle Springs Tribal Gaming Authority††
     9.38       06/15/2015       452,200  
  450,000    
Speedway Motorsports Incorporated††
     6.75       02/01/2019       454,500  
  2,075,000    
Speedway Motorsports Incorporated
     8.75       06/01/2016       2,261,750  
  2,800,000    
Yonkers Racing Corporation††
     11.38       07/15/2016       3,094,000  
       
 
                        
       
 
                     26,408,015  
       
 
                      
Household Durables: 0.02%                        
  149,000    
Sealy Mattress Company††
     10.88       04/15/2016       169,301  
 
       
 
                      
Internet & Catalog Retail: 0.15%                        
  990,000    
QVC Incorporated††
     7.50       10/01/2019       1,054,350  
 
       
 
                      
Media: 7.43%                        
  2,975,000    
Cablevision Systems Corporation
     8.63       09/15/2017       3,324,563  
  12,981,015    
CCH II Capital Corporation
     13.50       11/30/2016       15,707,028  
  940,000    
CCO Holdings LLC
     8.13       04/30/2020       1,001,100  
  2,290,000    
Charter Communications Incorporated Step Bondºº††
     8.00       04/30/2012       2,413,088  
  11,640,000    
Charter Communications Incorporated Step Bondºº††
     10.88       09/15/2014       13,095,000  
  350,000    
Cinemark USA Incorporated
     8.63       06/15/2019       378,875  
  200,000    
CSC Holdings LLC
     8.50       04/15/2014       223,500  
  2,260,000    
DISH DBS Corporation
     7.88       09/01/2019       2,392,775  
  650,000    
EchoStar DBS Corporation
     7.75       05/31/2015       699,563  
  1,275,000    
Gray Television Incorporated
     10.50       06/29/2015       1,310,063  
  675,000    
Lamar Media Corporation Series C
     9.75       04/01/2014       781,313  
  1,225,000    
LIN Television Corporation
     8.38       04/15/2018       1,316,875  
  5,050,000    
Regal Cinemas Corporation
     8.63       07/15/2019       5,378,250  
  2,461,000    
Salem Communications
     9.63       12/15/2016       2,670,185  
  250,000    
Sirius XM Radio Incorporated††
     9.75       09/01/2015       281,875  
  815,000    
Sirius XM Radio Incorporated††
     13.00       08/01/2013       969,850  
  3,619,000    
Young Broadcasting Incorporated^^
     8.75       01/15/2014       36  
The Portfolio of Investments should be read in conjunction with the Financial Statements and Notes to Financial Statements which are included in the Fund’s audited Annual Report or Semi-Annual Report. These reports include additional information about the Fund’s security valuation policies and about certain security types invested in by the Fund.

1

Table of Contents

PORTFOLIO OF INVESTMENTS — January 31, 2011 (UNAUDITED)
INCOME OPPORTUNITIES FUND
                                 
Principal     Security Name   Interest Rate     Maturity Date     Value  
Media (continued)                        
$ 2,325,000    
Young Broadcasting Incorporated^^(i)
     10.00 %     03/01/2011     $ 23  
       
 
                        
       
 
                     51,943,962  
       
 
                      
Multiline Retail: 0.19%                        
  1,270,000    
Saks Incorporated
     9.88       10/01/2011       1,325,563  
       
 
                      
 
Specialty Retail: 0.10%                        
  700,000    
Rent-A-Center Incorporated††
     6.63       11/15/2020       689,500  
       
 
                      
 
 
Textiles, Apparel & Luxury Goods: 0.62%                        
  3,850,000    
Oxford Industrial Incorporated
     11.38       07/15/2015       4,350,500  
       
 
                      
Consumer Staples: 1.37%                        
 
Beverages: 0.04%                        
  250,000    
Cott Beverages Incorporated
     8.38       11/15/2017       270,313  
       
 
                      
Food Products: 1.33%                        
  250,000    
Darling International Incorporated††
     8.50       12/15/2018       270,000  
  3,075,000    
Dole Food Company Incorporated
     13.88       03/15/2014       3,770,719  
  4,465,000    
Smithfield Foods Incorporated
     10.00       07/15/2014       5,251,956  
       
 
                        
       
 
                     9,292,675  
       
 
                      
Energy: 15.96%                        
 
Energy Equipment & Services: 3.16%                        
  2,210,000    
Bristow Group Incorporated
     7.50       09/15/2017       2,331,550  
  3,395,000    
Gulfmark Offshore Incorporated
     7.75       07/15/2014       3,454,413  
  5,325,000    
Hornbeck Offshore Services Incorporated Series B
     6.13       12/01/2014       5,271,750  
  4,920,000    
Hornbeck Offshore Services Incorporated Series B
     8.00       09/01/2017       5,049,150  
  860,000    
Parker Drilling Company
     9.13       04/01/2018       907,300  
  4,650,000    
PHI Incorporated
     8.63       10/15/2018       4,812,750  
  210,000    
Pride International Incorporated
     8.50       06/15/2019       248,850  
       
 
                        
       
 
                     22,075,763  
       
 
                      
Oil, Gas & Consumable Fuels: 12.80%                        
  5,085,000    
Chesapeake Energy Corporation
     9.50       02/15/2015       5,949,450  
  200,000    
Cloud Peak Enrgy Resources LLC
     8.25       12/15/2017       217,750  
  250,000    
Cloud Peak Enrgy Resources LLC
     8.50       12/15/2019       278,750  
  1,722,000    
Coffeyville Resources Incorporated††
     9.00       04/01/2015       1,876,980  
  2,665,000    
Consol Energy Incorporated††
     8.25       04/01/2020       2,911,513  
  850,000    
Denbury Resources Incorporated
     8.25       02/15/2020       936,063  
  1,155,000    
El Paso Corporation††
     6.50       09/15/2020       1,173,032  
  325,000    
El Paso Corporation
     6.88       06/15/2014       353,391  
  375,000    
El Paso Corporation
     7.00       06/15/2017       404,213  
  2,104,000    
El Paso Corporation
     7.25       06/01/2018       2,299,529  
  1,820,000    
El Paso Corporation
     7.42       02/15/2037       1,719,278  
  271,000    
El Paso Corporation
     7.75       01/15/2032       274,499  
  3,050,000    
El Paso Corporation
     7.80       08/01/2031       3,104,873  
  5,950,000    
Energy Transfer Equity
     7.50       10/15/2020       6,359,063  
  1,125,000    
Ferrellgas Partners LP††
     6.50       05/01/2021       1,091,250  
  1,825,000    
Ferrellgas Partners LP
     9.13       10/01/2017       2,012,063  
  1,870,000    
Forest Oil Corporation
     7.25       06/15/2019       1,940,125  
  1,115,000    
Forest Oil Corporation
     8.50       02/15/2014       1,234,863  
  1,000,000    
Griffin Coal Mining Company Limited^^
     9.50       12/01/2016       837,500  
  4,265,000    
Holly Corporation
     9.88       06/15/2017       4,702,163  
  1,125,000    
Inergy LP††
     6.88       08/01/2021       1,134,844  
  1,185,000    
Newfield Exploration Company
     6.88       02/01/2020       1,273,875  
The Portfolio of Investments should be read in conjunction with the Financial Statements and Notes to Financial Statements which are included in the Fund’s audited Annual Report or Semi-Annual Report. These reports include additional information about the Fund’s security valuation policies and about certain security types invested in by the Fund.

2

Table of Contents

PORTFOLIO OF INVESTMENTS — January 31, 2011 (UNAUDITED)
INCOME OPPORTUNITIES FUND
                                 
Principal     Security Name   Interest Rate     Maturity Date     Value  
Oil, Gas & Consumable Fuels (continued)                        
$ 8,705,000    
Peabody Energy Corporation
     7.88 %     11/01/2026     $ 9,793,125  
  215,000    
Penn Virginia Corporation
     10.38       06/15/2016       241,875  
  2,045,000    
Petrohawk Energy Corporation
     7.88       06/01/2015       2,167,700  
  1,065,000    
Petrohawk Energy Corporation
     10.50       08/01/2014       1,224,750  
  3,170,000    
Pioneer Natural Resource Company
     7.50       01/15/2020       3,511,656  
  6,380,000    
Plains Exploration & Production Company
     8.63       10/15/2019       7,097,750  
  475,000    
Regency Energy Partners
     6.88       12/01/2018       488,063  
  4,940,000    
Sabine Pass LNG LP
     7.25       11/30/2013       4,902,950  
  4,475,000    
Sabine Pass LNG LP
     7.50       11/30/2016       4,385,500  
  4,020,000    
SandRidge Energy Incorporated
     8.75       01/15/2020       4,281,300  
  2,450,000    
Ship Finance International Limited
     8.50       12/15/2013       2,486,750  
  1,450,000    
Stallion Oilfield Holdings Incorporated††
     10.50       02/15/2015       1,573,250  
  575,000    
Suburban Propane Partners LP
     7.38       03/15/2020       610,219  
  2,235,000    
Tesoro Corporation(i)
     7.50       07/17/2012       2,253,774  
  2,185,000    
Tesoro Corporation
     9.75       06/01/2019       2,458,125  
       
 
                        
       
 
                     89,561,854  
       
 
                      
Financials: 26.03%                        
 
Capital Markets: 1.90%                        
  1,675,000    
E*TRADE Financial Corporation
     7.38       09/15/2013       1,668,719  
  9,741,000    
E*TRADE Financial Corporation@
     12.50       11/30/2017       11,579,614  
       
 
                        
       
 
                     13,248,333  
       
 
                      
Commercial Banks: 1.66%                        
  4,375,000    
Capitalsource Incorporated††
     12.75       07/15/2014       5,277,344  
  500,000    
CIT Group Incorporated
     7.00       05/01/2015       506,875  
  1,000,000    
CIT Group Incorporated
     7.00       05/01/2016       1,010,000  
  5,725,000    
Emigrant Bancorp Incorporated††
     6.25       06/15/2014       4,778,245  
       
 
                        
       
 
                     11,572,464  
       
 
                      
Consumer Finance: 15.99%                        
  2,725,000    
American General Finance Corporation
     5.40       12/01/2015       2,329,875  
  2,250,000    
American General Finance Corporation
     5.75       09/15/2016       1,890,000  
  450,000    
American General Finance Corporation
     6.50       09/15/2017       380,250  
  3,150,000    
American General Finance Corporation
     6.90       12/15/2017       2,740,500  
  1,600,000    
Blue Acquisition Sub Incorporated††
     9.88       10/15/2018       1,708,000  
  2,700,000    
Calpine Construction Finance Corporation††
     8.00       06/01/2016       2,895,750  
  17,134,313    
CIT Group Incorporated
     7.00       05/01/2013       17,498,417  
  2,850,000    
CIT Group Incorporated
     7.00       05/01/2014       2,903,438  
  5,420,000    
Clearwire Communications Finance Corporation††
     12.00       12/01/2015       5,907,800  
  500,000    
Ford Motor Credit Company LLC
     7.00       10/01/2013       540,538  
  100,000    
Ford Motor Credit Company LLC
     8.00       12/15/2016       113,427  
  3,865,000    
Ford Motor Credit Company LLC
     9.88       08/10/2011       4,016,473  
  2,344,000    
GMAC LLC
     6.75       12/01/2014       2,519,800  
  130,000    
GMAC LLC
     6.88       09/15/2011       133,250  
  2,862,000    
GMAC LLC
     6.88       08/28/2012       3,022,988  
  6,855,000    
GMAC LLC
     7.50       12/31/2013       7,420,538  
  2,994,111    
Homer City Funding LLC
     8.73       10/01/2026       2,799,494  
  2,875,000    
International Lease Finance Corporation
     4.75       01/13/2012       2,932,500  
  4,170,000    
International Lease Finance Corporation
     5.30       05/01/2012       4,258,613  
  865,000    
International Lease Finance Corporation
     6.38       03/25/2013       901,763  
  1,700,000    
International Lease Finance Corporation††
     8.63       09/15/2015       1,895,500  
  2,050,000    
International Lease Finance Corporation Series MTN
     5.75       06/15/2011       2,065,375  
  8,465,000    
JBS USA Finance Incorporated
     11.63       05/01/2014       9,861,725  
  1,529,000    
LBI Escrow Corporation††
     8.00       11/01/2017       1,706,746  
  4,555,000    
Level 3 Financing Incorporated
     10.00       02/01/2018       4,555,000  
  1,925,000    
Nielsen Finance LLC Company††
     7.75       10/15/2018       2,064,563  
  1,170,000    
Nielsen Finance LLC Company
     11.50       05/01/2016       1,364,513  
The Portfolio of Investments should be read in conjunction with the Financial Statements and Notes to Financial Statements which are included in the Fund’s audited Annual Report or Semi-Annual Report. These reports include additional information about the Fund’s security valuation policies and about certain security types invested in by the Fund.

3

Table of Contents

PORTFOLIO OF INVESTMENTS — January 31, 2011 (UNAUDITED)
INCOME OPPORTUNITIES FUND
                                 
Principal     Security Name   Interest Rate     Maturity Date     Value  
Consumer Finance (continued)                        
$ 755,000    
Nielsen Finance LLC Senior Discount Note Step Bondºº
     12.50 %     08/01/2016     $ 793,694  
  525,000    
Nuveen Investments Incorporated††
     10.50       11/15/2015       540,750  
  9,875,000    
Sprint Capital Corporation
     6.88       11/15/2028       8,838,125  
  4,725,000    
Sprint Capital Corporation
     6.90       05/01/2019       4,736,813  
  6,133,000    
Sprint Capital Corporation
     8.38       03/15/2012       6,516,313  
       
 
                        
       
 
                     111,852,531  
       
 
                      
Diversified Financial Services: 3.90%                        
  8,820,000    
Ally Financial Incorporated
     8.30       02/12/2015       9,966,600  
  1,325,000    
Dunkin Finance Corporation††
     9.63       12/01/2018       1,351,500  
  1,300,000    
Hub International Holdings Incorporated††
     10.25       06/15/2015       1,342,250  
  7,815,000    
Leucadia National Corporation
     8.13       09/15/2015       8,596,500  
  4,000,000    
Nuveen Investments Incorporated
     5.50       09/15/2015       3,480,000  
  2,495,000    
Nuveen Investments Incorporated
     10.50       11/15/2015       2,569,850  
       
 
                        
       
 
                     27,306,700  
       
 
                      
Real Estate Investment Trusts (REITs): 2.58%                        
  11,580,000    
Dupont Fabros Technology Incorporated
     8.50       12/15/2017       12,535,350  
  490,000    
Host Marriott Corporation
     9.00       05/15/2017       548,800  
  3,375,000    
Omega Healthcare Investors††
     6.75       10/15/2022       3,332,813  
  1,560,000    
Ventas Incorporated
     9.00       05/01/2012       1,643,265  
       
 
                        
       
 
                     18,060,228  
       
 
                      
Health Care: 4.71%                        
 
Health Care Equipment & Supplies: 1.00%                        
  1,215,000    
Biomet Incorporated@
     10.38       10/15/2017       1,360,800  
  3,485,000    
Biomet Incorporated
     11.63       10/15/2017       3,938,050  
  900,000    
Cooper Companies Incorporated
     7.13       02/15/2015       931,500  
  775,000    
Fresenius Medical Care Incorporated††
     5.75       02/15/2021       765,313  
       
 
                        
       
 
                     6,995,663  
       
 
                      
Health Care Providers & Services: 3.47%                        
  2,440,000    
Apria Healthcare Group
     11.25       11/01/2014       2,693,150  
  1,925,000    
Aviv Healthcare Incorporated††
     7.75       02/15/2019       1,977,938  
  1,270,000    
Community Health Systems Incorporated Series WI
     8.88       07/15/2015       1,341,438  
  1,830,000    
HCA Incorporated
     7.88       02/01/2011       1,830,000  
  375,000    
HCA Incorporated
     8.50       04/15/2019       418,125  
  6,745,000    
HCA Incorporated
     9.25       11/15/2016       7,259,306  
  3,757,000    
HCA Incorporated@
     9.63       11/15/2016       4,052,864  
  175,000    
Health Management plc
     6.13       04/15/2016       177,625  
  750,000    
Healthsouth Corporation
     7.25       10/01/2018       767,813  
  750,000    
Healthsouth Corporation
     7.75       09/15/2022       780,000  
  900,000    
Omnicare Incorporated
     6.88       12/15/2015       931,500  
  1,975,000    
Sabra Health Care Corporation††
     8.13       11/01/2018       2,049,063  
       
 
                        
       
 
                     24,278,822  
       
 
                      
Pharmaceuticals: 0.24%                        
  650,000    
Mylan Incorporated††
     7.63       07/15/2017       708,500  
  300,000    
Mylan Incorporated††
     7.88       07/15/2020       331,875  
  650,000    
Mylan Incorporated††
     6.00       11/15/2018       663,000  
       
 
                        
       
 
                     1,703,375  
       
 
                      
The Portfolio of Investments should be read in conjunction with the Financial Statements and Notes to Financial Statements which are included in the Fund’s audited Annual Report or Semi-Annual Report. These reports include additional information about the Fund’s security valuation policies and about certain security types invested in by the Fund.

4

Table of Contents

PORTFOLIO OF INVESTMENTS — January 31, 2011 (UNAUDITED)
INCOME OPPORTUNITIES FUND
                                 
Principal     Security Name   Interest Rate     Maturity Date     Value  
Industrials: 10.25%                        
 
Aerospace & Defense: 3.52%                        
$ 4,470,000    
Alliant Techsystems Incorporated
     6.75 %     04/01/2016     $ 4,604,100  
  800,000    
Digitalglobe Incorporated
     10.50       05/01/2014       914,000  
  1,030,000    
Gencorp Incorporated
     9.50       08/15/2013       1,057,038  
  1,140,000    
GeoEye Incorporated
     9.63       10/01/2015       1,288,200  
  1,089,000    
Hexcel Corporation
     6.75       02/01/2015       1,108,058  
  2,570,000    
Kratos Defense & Security Solutions Incorporated
     10.00       06/01/2017       2,868,763  
  5,585,000    
L-3 Communications Holdings Incorporated
     5.88       01/15/2015       5,696,700  
  5,506,000    
L-3 Communications Holdings Incorporated
     6.38       10/15/2015       5,678,063  
  1,445,000    
Wyle Services Corporation††
     10.50       04/01/2018       1,434,163  
       
 
                        
       
 
                     24,649,085  
       
 
                      
Commercial Services & Supplies: 2.67%                        
  250,000    
Casella Waste Systems Incorporated††
     7.75       02/15/2019       255,625  
  4,385,000    
Casella Waste Systems Incorporated
     11.00       07/15/2014       4,922,163  
  1,840,000    
Corrections Corporation of America
     6.25       03/15/2013       1,844,600  
  2,035,000    
Corrections Corporation of America
     7.75       06/01/2017       2,223,238  
  2,205,000    
Geo Group Incorporated
     7.75       10/15/2017       2,315,250  
  300,000    
Interface Incorporated††
     7.63       12/01/2018       314,250  
  3,520,000    
Iron Mountain Incorporated
     8.38       08/15/2021       3,828,000  
  400,000    
KAR Holdings Incorporated
     10.00       05/01/2015       424,000  
  2,125,000    
KAR Holdings Incorporated ±
     4.29       05/01/2014       2,050,625  
  500,000    
KAR Holdings Incorporated
     8.75       05/01/2014       520,000  
       
 
                        
       
 
                     18,697,751  
       
 
                      
Machinery: 1.40%                        
  1,440,000    
Cleaver-Brooks Incorporated††
     12.25       05/01/2016       1,544,400  
  900,000    
Columbus McKinnon Corporation††
     7.88       02/01/2019       920,250  
  940,000    
Commercial Vehicle Group Incorporated
     8.00       07/01/2013       921,200  
  4,888,161    
Commercial Vehicle Group Incorporated@
     13.00       02/15/2013       5,181,451  
  450,000    
Thermadyne Holdings Corporation††
     9.00       12/15/2017       474,750  
  700,000    
Titan International Incorporated††
     7.88       10/01/2017       745,500  
       
 
                        
       
 
                     9,787,551  
       
 
                      
Professional Services: 0.57%                        
  207,000    
Affinia Group Incorporated††
     10.75       08/15/2016       230,805  
  500,000    
Brickman Group Holdings††
     9.13       11/01/2018       525,625  
  450,000    
Interactive Data Corporation††
     10.25       08/01/2018       498,375  
  3,050,000    
NCO Group Incorporated
     11.88       11/15/2014       2,699,250  
       
 
                        
       
 
                     3,954,055  
       
 
                      
Road & Rail: 1.92%                        
  8,285,000    
Kansas City Southern
     8.00       06/01/2015       8,947,800  
  1,184,000    
Kansas City Southern
     13.00       12/15/2013       1,414,880  
  2,775,000    
RailAmerica Incorporated
     9.25       07/01/2017       3,062,906  
       
 
                        
       
 
                     13,425,586  
       
 
                      
Transportation Infrastructure: 0.17%                        
  1,190,000    
United Maritime Group
     11.75       06/15/2015       1,190,000  
       
 
                      
Information Technology: 9.18%                        
Communications Equipment: 1.24%                        
  2,234,000    
Allbritton Communication
     8.00       05/15/2018       2,320,568  
  585,000    
EchoStar DBS Corporation
     7.13       02/01/2016       611,325  
The Portfolio of Investments should be read in conjunction with the Financial Statements and Notes to Financial Statements which are included in the Fund’s audited Annual Report or Semi-Annual Report. These reports include additional information about the Fund’s security valuation policies and about certain security types invested in by the Fund.

5

Table of Contents

PORTFOLIO OF INVESTMENTS — January 31, 2011 (UNAUDITED)
INCOME OPPORTUNITIES FUND
                                 
Principal     Security Name   Interest Rate     Maturity Date     Value  
Communications Equipment (continued)                        
$ 3,100,000    
Lucent Technologies Incorporated
     6.45 %     03/15/2029     $ 2,464,500  
  1,875,000    
Seagate Technology Holdings††
     7.75       12/15/2018       1,921,875  
  1,275,000    
Seagate Technology Holdings
     6.80       10/01/2016       1,313,250  
       
 
                        
       
 
                     8,631,518  
       
 
                      
Electronic Equipment & Instruments: 5.11%                        
  3,750,000    
GCI Incorporated
     7.25       02/15/2014       3,787,500  
  2,820,000    
Intcomex Incorporated††
     13.25       12/15/2014       2,961,000  
  13,532,000    
Jabil Circuit Incorporated
     8.25       03/15/2018       15,494,140  
  3,380,000    
Kemet Corporation
     10.50       05/01/2018       3,718,000  
  6,014,750    
SunGard Data Systems Incorporated
     10.25       08/15/2015       6,338,043  
  550,000    
SunGard Data Systems Incorporated††
     7.63       11/15/2020       567,875  
  2,530,000    
Viasystem Group Incorporated††
     12.00       01/15/2015       2,874,713  
       
 
                        
       
 
                     35,741,271  
       
 
                      
Internet Software & Services: 0.93%                        
  2,125,000    
Equinix Incorporated
     8.13       03/01/2018       2,295,000  
  3,395,000    
Terremark Worldwide Incorporated
     12.00       06/15/2017       4,235,263  
       
 
                        
       
 
                     6,530,263  
       
 
                      
IT Services: 1.90%                        
  3,050,000    
First Data Corporation
     11.25       03/31/2016       2,821,250  
  2,835,000    
iPayment Incorporated
     9.75       05/15/2014       2,757,038  
  1,100,000    
Sungard Data Systems Incorporated††
     7.38       11/15/2018       1,122,000  
  1,950,000    
Syniverse Holdings Incorporated††
     9.13       01/15/2019       2,076,750  
  1,065,000    
Unisys Corporation
     12.50       01/15/2016       1,184,813  
  1,600,000    
Unisys Corporation††
     12.75       10/15/2014       1,920,000  
  1,155,000    
Unisys Corporation††
     14.25       09/15/2015       1,394,663  
       
 
                        
       
 
                     13,276,514  
       
 
                      
Materials: 6.55%                        
 
Chemicals: 1.48%                        
  500,000    
Chemtura Corporation††
     7.88       09/01/2018       533,750  
  2,855,000    
Huntsman International LLC
     5.50       06/30/2016       2,797,900  
  4,807,125    
Lyondell Chemical Company
     11.00       05/01/2018       5,480,123  
  1,300,000    
Solutia Incorporated
     7.88       03/15/2020       1,410,500  
  150,000    
Vertellus Specialties Incorporated††
     9.38       10/01/2015       161,438  
       
 
                        
       
 
                     10,383,711  
       
 
                      
Construction Materials: 1.77%                        
  1,480,000    
CPG International Incorporated ±
     7.21       07/01/2012       1,480,000  
  3,415,000    
CPG International Incorporated
     10.50       07/01/2013       3,491,838  
  3,025,000    
CPG International Incorporated††
     10.63       09/01/2014       3,267,000  
  3,725,000    
Headwaters Incorporated
     11.38       11/01/2014       4,153,375  
       
 
                        
       
 
                     12,392,213  
       
 
                      
Containers & Packaging: 1.31%                        
  5,780,000    
Exopack Holding Corporpation
     11.25       02/01/2014       5,938,950  
  350,000    
Graham Packaging Company Incorporated
     8.25       01/01/2017       367,500  
  2,450,000    
Graham Packaging Company Incorporated
     9.88       10/15/2014       2,535,750  
  325,000    
Owens Brockway Glass Container Incorporated
     7.38       05/15/2016       353,438  
       
 
                        
       
 
                     9,195,638  
       
 
                      
The Portfolio of Investments should be read in conjunction with the Financial Statements and Notes to Financial Statements which are included in the Fund’s audited Annual Report or Semi-Annual Report. These reports include additional information about the Fund’s security valuation policies and about certain security types invested in by the Fund.

6

Table of Contents

PORTFOLIO OF INVESTMENTS — January 31, 2011 (UNAUDITED)
INCOME OPPORTUNITIES FUND
                                 
Principal     Security Name   Interest Rate     Maturity Date     Value  
Metals & Mining: 1.24%                        
$ 5,725,000    
Freeport-McMoRan Copper & Gold Incorporated
     8.38 %     04/01/2017     $ 6,383,375  
  5,985,000    
Indalex Holdings Corporation^^
     11.50       02/01/2014       97,256  
  1,000,000    
Novelis Incorporated††
     8.75       12/15/2020       1,086,250  
  1,000,000    
Novelis Incorporated††
     8.38       12/15/2017       1,077,500  
       
 
                        
       
 
                     8,644,381  
       
 
                      
Paper & Forest Products: 0.75%                        
  1,175,000    
Clearwater Paper Corporation
     10.63       06/15/2016       1,340,969  
  887,000    
Georgia-Pacific Corporation††
     7.00       01/15/2015       918,045  
  2,430,000    
Georgia-Pacific Corporation
     8.88       05/15/2031       2,958,525  
       
 
                        
       
 
                     5,217,539  
       
 
                      
Telecommunication Services: 11.09%                        
 
Diversified Telecommunication Services: 6.60%                        
  9,580,000    
Citizens Communications Company
     7.88       01/15/2027       9,484,200  
  2,550,000    
FairPoint Communications Incorporated††
     10.88       04/01/2017       2,836,875  
  1,980,000    
Frontier Communications Corporation
     8.13       10/01/2018       2,229,975  
  4,455,000    
Frontier Communications Corporation
     8.25       04/15/2017       4,989,600  
  1,000,000    
Frontier Communications Corporation
     8.50       04/15/2020       1,127,500  
  1,200,000    
GCI Incorporated
     8.63       11/15/2019       1,305,000  
  345,000    
Global Crossing Limited
     12.00       09/15/2015       396,750  
  3,260,000    
Qwest Corporation
     7.50       06/15/2023       3,268,150  
  440,000    
Qwest Corporation
     7.63       08/03/2021       444,400  
  7,340,000    
Qwest Corporation
     8.88       03/15/2012       7,908,850  
  1,090,000    
SBA Telecommunications Incorporated
     8.00       08/15/2016       1,190,825  
  485,000    
SBA Telecommunications Incorporated
     8.25       08/15/2019       534,713  
  1,810,000    
U.S. West Communications Incorporated
     7.13       11/15/2043       1,751,175  
  2,755,000    
U.S. West Communications Incorporated
     7.25       09/15/2025       2,947,850  
  5,380,000    
Windstream Corporation
     7.88       11/01/2017       5,763,325  
       
 
                        
       
 
                     46,179,188  
       
 
                      
Wireless Telecommunication Services: 4.49%                        
  650,000    
CC Holdings LLC††
     7.75       05/01/2017       715,000  
  3,255,000    
Cricket Communications Incorporated
     7.75       05/15/2016       3,425,888  
  165,000    
Crown Castle International Corporation
     7.13       11/01/2019       175,313  
  650,000    
Crown Castle International Corporation
     9.00       01/15/2015       724,750  
  4,155,000    
Intelsat Limited
     8.50       01/15/2013       4,175,775  
  465,000    
Intelsat Limited
     11.25       06/15/2016       499,875  
  2,607,559    
iPCS Incorporated@
     3.54       05/01/2014       2,529,332  
  4,150,000    
Metropcs Wireless Incorporated
     6.63       11/15/2020       4,004,750  
  1,050,000    
Metropcs Wireless Incorporated
     7.88       09/01/2018       1,097,250  
  7,935,000    
Nextel Communications Incorporated Series D
     7.38       08/01/2015       7,994,513  
  6,065,000    
Nextel Communications Incorporated Series F
     5.95       03/15/2014       6,072,581  
       
 
                        
       
 
                     31,415,027  
       
 
                      
Utilities: 9.25%                        
 
Electric Utilities: 4.48%                        
  14,996,000    
Aquila Incorporated Step Bondºº
     11.88       07/01/2012       16,939,313  
  150,000    
Energy Future Holdings Corporation
     10.00       12/01/2020       159,000  
  1,708,722    
Energy Future Holdings Corporpation@
     11.25       11/01/2017       1,136,300  
  250,000    
Mirant Americas Generation LLC
     8.50       10/01/2021       263,750  
  7,560,525    
Mirant Mid-Atlantic LLC Series C
     10.06       12/30/2028       8,543,393  
  3,985,000    
Otter Tail Corporation
     9.00       12/15/2016       4,303,800  
       
 
                        
       
 
                     31,345,556  
       
 
                      
The Portfolio of Investments should be read in conjunction with the Financial Statements and Notes to Financial Statements which are included in the Fund’s audited Annual Report or Semi-Annual Report. These reports include additional information about the Fund’s security valuation policies and about certain security types invested in by the Fund.

7

Table of Contents

PORTFOLIO OF INVESTMENTS — January 31, 2011 (UNAUDITED)
INCOME OPPORTUNITIES FUND
                                 
Principal     Security Name   Interest Rate     Maturity Date     Value  
Gas Utilities: 0.23%                        
$ 1,050,000    
AmeriGas Partners LP
     6.50 %     05/20/2021     $ 1,068,375  
  550,000    
AmeriGas Partners LP
     7.13       05/20/2016       573,375  
       
 
                        
       
 
                     1,641,750  
       
 
                      
Independent Power Producers & Energy Traders: 4.54%                        
  2,045,000    
AES Corporation
     8.88       02/15/2011       2,045,000  
  7,569,000    
Calpine Corporation††
     7.25       10/15/2017       7,739,303  
  4,850,000    
Dynegy Holding Incorporated
     7.63       10/15/2026       3,140,375  
  4,175,000    
NRG Energy Incorporated
     7.38       02/01/2016       4,321,125  
  5,650,000    
NRG Energy Incorporated
     7.38       01/15/2017       5,876,000  
  3,675,000    
NRG Energy Incorporated
     8.50       06/15/2019       3,831,188  
  1,020,000    
RRI Energy Incorporated
     7.63       06/15/2014       1,071,000  
  75,000    
RRI Energy Incorporated
     7.88       06/15/2017       75,563  
  2,617,955    
RRI Energy Incorporated
     9.24       07/02/2017       2,801,212  
  780,000    
RRI Energy Incorporated
     9.68       07/02/2026       842,400  
       
 
                        
       
 
                     31,743,166  
       
 
                      
Total Corporate Bonds and Notes (Cost $739,914,366)                     783,060,089  
 
       
 
                      
Yankee Corporate Bonds and Notes: 2.76%                        
 
Consumer Discretionary: 0.10%                        
 
Media: 0.10%                        
  100,000    
Videotron Limited
     6.38       12/15/2015       102,500  
  525,000    
Videotron Limited
     9.13       04/15/2018       587,344  
       
 
                        
       
 
                     689,844  
       
 
                      
Energy: 1.27%                        
 
Oil, Gas & Consumable Fuels: 1.27%                        
  1,610,000    
Connacher Oil & Gas Limited††
     10.25       12/15/2015       1,694,525  
  360,000    
Connacher Oil & Gas Limited††
     11.75       07/15/2014       391,050  
  7,306,000    
Griffin Coal Mining Company Limited††^^
     9.50       12/31/2049       6,118,775  
  1,115,000    
OPTI Canada Incorporated
     7.88       12/15/2014       666,213  
       
 
                        
       
 
                     8,870,563  
       
 
                      
Financials: 0.36%                        
 
Consumer Finance: 0.36%                        
  2,205,000    
Wind Acquisition Finance SA††
     11.75       07/15/2017       2,513,700  
       
 
                      
 
Diversified Financial Services: 0.00%                        
  1,540,000    
Preferred Term Securities XII Limited ±^^(i)
     0.00       12/24/2033       462  
       
 
                      
 
Materials: 0.78%                        
 
Metals & Mining: 0.17%                        
  630,000    
Novelis Incorporated
     7.25       02/15/2015       642,600  
  500,000    
Vedanta Resources plc
     9.50       07/18/2018       555,000  
       
 
                        
       
 
                     1,197,600  
       
 
                      
The Portfolio of Investments should be read in conjunction with the Financial Statements and Notes to Financial Statements which are included in the Fund’s audited Annual Report or Semi-Annual Report. These reports include additional information about the Fund’s security valuation policies and about certain security types invested in by the Fund.

8

Table of Contents

PORTFOLIO OF INVESTMENTS — January 31, 2011 (UNAUDITED)
INCOME OPPORTUNITIES FUND
                                 
Principal     Security Name   Interest Rate     Maturity Date     Value  
Paper & Forest Products: 0.61%                        
$ 715,000    
PE Paper Escrow GmbH††
     12.00 %     08/01/2014     $ 833,098  
  1,265,000    
Sappi Limited††
     6.75       06/15/2012       1,299,825  
  2,355,000    
Sappi Limited††
     7.50       06/15/2032       2,098,858  
       
 
                        
       
 
                     4,231,781  
       
 
                      
Telecommunication Services: 0.25%                        
 
Wireless Telecommunication Services: 0.25%                        
  870,000    
Digicel Group Limited††
     12.00       04/01/2014       1,014,638  
  690,000    
Telesat Canada Incorporated
     11.00       11/01/2015       774,525  
       
 
                        
       
 
                     1,789,163  
       
 
                      
Total Yankee Corporate Bonds and Notes (Cost $16,581,057)                     19,293,113  
       
 
                      
 
Convertible Debentures: 0.74%                        
 
Information Technology: 0.74%                        
 
Communications Equipment: 0.44%                        
  3,225,000    
Lucent Technologies Incorporated Series B
     2.88       06/15/2025       3,067,781  
       
 
                      
 
Semiconductors & Semiconductor Equipment: 0.30%                        
  2,025,000    
Advanced Micro Devices Incorporated
     5.75       08/15/2012       2,098,406  
       
 
                      
 
Total Convertible Debentures (Cost $4,244,600)                     5,166,187  
       
 
                      
                                 
Shares                  
Closed End Mutual Funds: 0.43%                        
  92,340    
Dreyfus High Yield Strategies Fund Incorporated
                     419,224  
  85,251    
Eaton Vance Limited Duration Income Trust
                     1,359,753  
  29,726    
LMP Corporate Loan Fund Incorporated
                     356,712  
  85,764    
New America High Income Fund Incorporated
                     855,067  
       
 
                        
Total Closed End Mutual Funds (Cost $1,592,609)                     2,990,756  
       
 
                      
 
Principal                        
 
Term Loans: 10.58%                        
$ 900,000    
Advantage Sales & Marketing Incorporated
     9.25       06/18/2018       915,192  
  1,975,000    
Barrington Broadcasting Company
     4.53       08/12/2013       1,900,938  
  2,608,650    
Blackstone Group LP
     7.75       11/02/2014       2,686,910  
  6,109,380    
Capital Automotive
     5.00       12/14/2012       6,262,115  
  5,726,082    
Coinmach Corporation^
     3.28       11/20/2014       5,350,337  
  11,732,499    
Fairpoint Communications Incorporated
     0.00       03/31/2015       8,545,131  
  819,103    
Federal Mogul Corporation
     2.20       12/28/2015       795,849  
  823,458    
Federal Mogul Corporation
     2.20       12/29/2014       800,080  
  7,200,000    
First Data Corporation
     3.01       09/24/2014       6,800,746  
  1,819,319    
Gray Television
     3.77       12/31/2014       1,799,834  
  1,300,000    
Level 3 Financing Incorporated
     2.55       03/13/2014       1,270,750  
  3,186,847    
Local TV Finance LLC
     2.31       05/07/2013       3,083,274  
  1,901,672    
Merisant Company (i)
     7.50       01/08/2014       1,807,786  
  2,692,045    
NCO Group Incorporated
     7.50       11/15/2013       2,646,631  
  5,920,000    
Newsday LLC
     10.50       08/01/2013       6,286,330  
  484,688    
Panolam Industries International
     8.25       12/31/2013       437,431  
  2,375,000    
Sugarhouse HSP Gaming Properties LP
     11.25       09/23/2014       2,411,623  
  24,562,583    
TXU Energy Company LLC^
     3.76       10/10/2014       20,208,865  
       
 
                        
Total Term Loans (Cost $71,222,779)                     74,009,822  
       
 
                      
The Portfolio of Investments should be read in conjunction with the Financial Statements and Notes to Financial Statements which are included in the Fund’s audited Annual Report or Semi-Annual Report. These reports include additional information about the Fund’s security valuation policies and about certain security types invested in by the Fund.

9

Table of Contents

PORTFOLIO OF INVESTMENTS — January 31, 2011 (UNAUDITED)
INCOME OPPORTUNITIES FUND
                                 
Shares     Security Name                   Value  
Short-Term Investments: 5.28%                        
  36,979,607    
Wells Fargo Advantage Cash Investment Money Market Fund##(l)(u)
                   $ 36,979,607  
       
 
                      
Total Short-Term Investments (Cost $36,979,607)                     36,979,607  
       
 
                      
Total Investments in Securities                        
(Cost $870,535,018)*     131.74 %             921,499,574  
Other Assets and Liabilities, Net     (31.74 )             (222,013,795 )
       
 
                    
Total Net Assets     100.00 %           $ 699,485,779  
       
 
                    
Footnote Legend: 0.00%
 
##   All or a portion of this security has been segregated for when-issued, delayed delivery securities and/or unfunded loans.
 
^   All or a portion of the position represents an unfunded loan commitment.
 
ºº   Stepped coupon bond. Interest rate presented is yield to maturity.
 
@   Payment-in-kind (PIK) securities are securities in which the issuer may make interest or dividend payments in cash or additional securities. These additional securities generally have the same terms as the original holdings.
 
(l)   Investment in an affiliate.
 
††   Securities that may be resold to “qualified institutional buyers” under Rule 144A or securities offered pursuant to Section 4(2) of the Securities Act of 1933, as amended.
 
±   Variable rate investments.
 
^^   This security is currently in default with regards to scheduled interest and/or principal payments. The Fund has stopped accruing interest on this security.
 
(i)   Illiquid security
 
(u)   Rate shown is the 7-day annualized yield at period end.
 
*   Cost for federal income tax purposes is $875,350,350 and net unrealized appreciation (depreciation) consists of:
         
Gross unrealized appreciation
   $ 60,488,971  
Gross unrealized depreciation
     (14,339,747 )
 
      
Net unrealized appreciation
   $ 46,149,224  
The Portfolio of Investments should be read in conjunction with the Financial Statements and Notes to Financial Statements which are included in the Fund’s audited Annual Report or Semi-Annual Report. These reports include additional information about the Fund’s security valuation policies and about certain security types invested in by the Fund.

10

Table of Contents

Wells Fargo Advantage Income Opportunities Fund
Notes to Portfolio of Investments — January 31, 2011 (unaudited)
SECURITIES VALUATION
Investments in securities are valued each business day as of the close of regular trading on the New York Stock Exchange, which is usually 4:00 p.m. (Eastern Time). Securities which are traded on a national or foreign securities exchange are valued at the last reported sales price, except that securities listed on The Nasdaq Stock Market, Inc. (“Nasdaq”) are valued at the Nasdaq Official Closing Price (“NOCP”), and if no NOCP is available, then at the last reported sales price. If no sales price is shown on the Nasdaq, the bid price will be used. In the absence of any sale of securities listed on the Nasdaq, and in the case of other securities, including U.S. Government obligations, but excluding debt securities maturing in 60 days or less, the price will be deemed “stale” and the valuations will be determined in accordance with the Fund’s Fair Valuation Procedures.
Certain fixed income securities with maturities exceeding 60 days are valued based on available market quotations received from an independent pricing service approved by the Trust’s Board of Trustees which may utilize both transaction data and market information such as yield, prices of securities of comparable quality, coupon rate, maturity, type of issue, trading characteristics and other market data. If valuations are not available from the pricing service or values received are deemed not representative of market value, values will be obtained from a third party broker-dealer or determined based on the Fund’s Fair Value Procedures.
Certain investments which are not valued using any of the methods discussed above, are valued at their fair value, as determined by procedures established in good faith and approved by the Board of Trustees.
The valuation techniques used by the Fund to measure fair value are consistent with the market approach, income approach and/or cost approach, where applicable, for each security type.
WHEN-ISSUED TRANSACTIONS
The Fund may purchase securities on a forward commitment or ‘when-issued’ basis. The Fund records a when-issued transaction on the trade date and will segregate assets to cover its obligation by confirming the availability of qualifying assets having a value sufficient to make payment for the securities purchased. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.
TERM LOANS
The Fund may invest in term loans. The loans are marked-to-market daily and the Fund begins earning interest when the loans are funded. The loans pay interest at rates which are periodically reset by reference to a base lending rate plus a spread. The Fund assumes the credit risk of the borrower and there could be potential loss to the Fund in the event of default by the borrower.
As of January 31, 2011, the Fund had unfunded loan commitments of $1,849,000.
FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:
  Level 1    — quoted prices in active markets for identical securities
 
  Level 2    — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
 
  Level 3    — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

Table of Contents

As of January 31, 2011, the inputs used in valuing the Fund’s assets, which are carried at fair value, were as follows:
                                 
            Significant Other     Significant        
            Observable     Unobservable        
    Quoted Prices     Inputs     Inputs        
Investments in Securities   (Level 1)     (Level 2)     (Level 3)     Total  
 
Corporate bonds and notes
   $ 0     $ 771,045,023     $ 12,015,066     $ 783,060,089  
Yankee corporate bonds and notes
     0       19,292,651       462       19,293,113  
Convertible debentures
     0       5,166,187       0       5,166,187  
Investment companies
     2,990,756       0       0       2,990,756  
Term loans
     0       74,009,822       0       74,009,822  
Short-term investments
                                
Investment companies
     36,979,607       0       0       36,979,607  
     
 
 
Total
   $ 39,970,363     $ 869,513,683     $ 12,015,528     $ 921,499,574  
     
The following is a reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining fair value:
                                 
    Corporate bonds and     Yankee corporate              
    notes     bonds and notes     Term loans     Total  
Balance as of April 30, 2010
   $ 817,002     $ 0     $ 13,198,721     $ 14,015,723  
Accrued discounts (premiums)
     157       0       50,444       50,601  
Realized gains (losses)
     (962,719 )     0       (101,472 )     (1,064,191 )
Change in unrealized gains (losses)
     1,025,056       0       (335,812 )     689,244  
Purchases
     0       0       1,731,631       1,731,631  
Sales
     (879,496 )     0       (14,543,512 )     (15,423,008 )
Transfers into Level 3
     12,015,066       462       0       12,015,528  
Transfers out of Level 3
     0       0       0       0  
     
Balance as of January 31, 2011
   $ 12,015,066     $ 462     $ 0     $ 12,015,528  
     
 
                                
Change in unrealized gains (losses) included in earnings relating to securities still held at January 31, 2011
   $ 0     $ 0             $ 0  
     

 

Table of Contents

ITEM 2.   CONTROLS AND PROCEDURES
(a) The President and Treasurer have concluded that the Wells Fargo Advantage Income Opportunities Fund (the “Trust”) disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons based on their evaluation of these controls and procedures as of a date within 90 days of the filing of this report.
(b) There were no significant changes in the Trust’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the registrant’s last fiscal quarter that has materially affected or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Table of Contents

SIGNATURES
     Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
             
    Wells Fargo Advantage Income Opportunities Fund    
 
            
 
  By:   /s/ Karla M. Rabusch
 
Karla M. Rabusch 		   
 
      President    
 
            
 
  Date:   March 29, 2011    
     Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
             
    Wells Fargo Advantage Income Opportunities Fund    
 
            
 
  By:   /s/ Karla M. Rabusch
 
Karla M. Rabusch 		   
 
      President    
 
            
 
  Date:   March 29, 2011    
 
            
 
  By:   /s/ Kasey L. Phillips
 
Kasey L. Phillips 		   
 
      Treasurer    
 
            
 
  Date:   March 29, 2011